The State of California faces some difficult decisions to solve
its budget deficit. One proposal by the Governor is ill conceived
and causes harm to some of our most vulnerable citizens. The
Governor plans to rob the local coffers of the City of Hollister
Redevelopment Agency, as well as Redevelopment Agencies statewide,
to help balance the budget.
Balancing budget on backs of the poor
By BRIAN R. ABBOTT
The State of California faces some difficult decisions to solve its budget deficit. One proposal by the Governor is ill conceived and causes harm to some of our most vulnerable citizens. The Governor plans to rob the local coffers of the City of Hollister Redevelopment Agency, as well as Redevelopment Agencies statewide, to help balance the budget. Locally this means a loss of between $3 and $5 million from the City of Hollister’s Redevelopment agency this year alone and approximately another $500 million statewide. Several important projects in the City will be impacted if the legislature approves this proposal, including plans to construct 23 new apartments for very-low-income families, 72 low-income senior apartments, 25 self-help-built homes for low-income residents, and a rehabilitation project to preserve 42 low-income rental units.
The housing market in San Benito County has become increasingly unaffordable to low-income residents. Exacerbating this problem has been the decrease in apartment construction in general, due to tax disincentives, and, in particular, no new affordable rental units have been constructed in the City in almost 10 years. The current waiting list for affordable rental units is about two years. These factors have contributed to many low-income residents living in overcrowded and substandard housing to secure affordable rents. The housing crisis in our community has also contributed to an increase in homelessness. A recent survey estimated up to 4,000 homeless individuals live in San Benito County, which is a 3,900 percent increase from 1992 when the estimate was about 100 homeless. This number is even more astounding because it equals 7.2 percent of the total population of the County.
The City of Hollister and local nonprofit housing developers have been working to respond to this crisis by increasing the number of affordable units and preserving existing ones. The Governor’s proposal to raid “unencumbered” low and moderate income housing funds could not come at a worse time for our community. If the legislature approves the Governor’s proposal, our community will lose 120 new low-income housing units and 42 existing units will languish in disrepair. If the state takes the fund, most of these projects cannot be revived at a later date.
The Governor views RDA’s statewide as having approximately five hundred million dollars in “unencumbered” funds that they are “resistant” to spend. Such rationalizations are patently absurd.
The Governor’s office interprets unencumbered as meaning funds that have not been committed by existing contracts. This view is not based in the reality of how RDA’s operate. For instance, the City of Hollister has encumbered current RDA funds by virtue of designating the above-mentioned projects to receive RDA funds. Certain conditions must be satisfied before entering into legal agreements with these organizations. Our local community, as well as those around the state, should not be penalized and harmed because the Governor’s office employs a narrow, unrealistic definition to justify taking away local funds that benefit our communities.
The Governor’s proposal is yet another action to solve the budget deficit on the backs of those who can least afford it. Without affordable housing, low-income residents will be forced to pay higher rents that they cannot afford. This situation results in rising rates of homelessness, people living in substandard conditions and overcrowding in existing housing. These conditions cause a whole host of social and health problems that must be dealt with by health and human services, and law enforcement, which increases the cost of service delivery on local and state levels.
The proposal to take away RDA funds for low and moderate-income housing will also affect the State in the long-term. Without adequate and affordable housing, our communities cannot retain or attract businesses. Companies need a reliable and local pool of employees. Rather than have employees commute long distances, employers will relocate to areas, including outside of the State, so that employees have affordable housing near the place of employment. The migration of employers locally or from the State creates long-term implications for revenue reductions in our community and for the State.
We hope the citizens of Hollister voice their opposition to this proposal by immediately writing or calling their elected officials, including the Governor.
Brian R. Abbott is executive director of the Community Services Development Corporation
